We probably will be some day again like in the 80's but do not believe we are there yet. Bubbles can take a long time to develop and top out. Look how long housing ran before it popped. Also as long as land is in strong hands it is not likely to be in a bubble. Prices can decline but for a true bubble to burst significant leverage is required. The leveraged positions create a downward spiral in prices as the leveraged bets frantically try to get out. Without the leverage prices can go down, but the self reinforcing feedback loop does not develop.

There are those that say gold is in a bubble but I contend it is not for the same reasons as above. Ask a crowd of a hundred people how many actually have physical bullion or significant investment in etf's and unless you are at a gold convention most likely there will be no hands held up or maybe one. When half the hands hold up and the other half are thinking of buying, then it will be in a bubble. Right now most of the gold is in strong hands, just like farm land.

Now if you want to talk bubbles, bonds are the next bubble. That is a crowded trade with no returns. If interest rates perk up that exit is going to get crowded and losses major.

John